A state audit found any rules were broken when the state awarded employee health contracts to Blue Cross-Blue Shield last year.   The state’s auditor general, William G. Holland, was asked to review the procurement process used to award the $7 billion in contracts, an award that was protested from the start. Holland says the Department of Healthcare and Family Services erred in several instances.


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“They failed to include all the relevant information including scoring evaluation in the [request for proposals],” he says. “They failed to ensure that members of the evaluation team had all the needed materials to score the proposals.”   Holland says the state awarded contracts to Blue Cross in counties for which the company hadn’t submitted proposals. He says 24 counties where Blue Cross won contracts had no Blue Cross primary care physicians.   Holland says the department recognizes the problems, but department director Julie Hamos maintains the procurement process was fair and open.   Holland says that’s not how he’d characterize it.


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